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R-13-07 RESOLUTION NO. R-13-07 A RESOLUTION APPROVING THE TERMS CONDITIONS OF FAIRF XED SETTLEMENT WITH FAIRFAX WATER AND THE COUNTY UNDER WHICH CITY WATER CUSTOMERS WILL BECOME RETAILI1 CUSTOMERS OF FAIRFAX WATER WHEREAS, the City and various other Northern fax County proposing to regu ate Virginia challenges to action by the Board of Supervisors of Fairfax charged by the City to City water customers located in the County of Fairfax; and,, have entered into negotiated the other jurisdictions hav d settlements re arding and the City entered their pending litigation with the County of Fairfax and Fairfax Water and court-led mediation in an attempt to negotiate the possible terms for an agreement into federal cou to resolve its litigation; and WHEREAS, the City, Fairfax Water and the County of Fairfax negotiated tle terms of a mediated settlement under which all current City water customers would become retail customers of Fairfax Water; and City WHEREAS, the Mayor and Cit Council believe that it is in the City's best hort and e long term interest, and the interest of the City's entire d for all current Cy y watero upst rmers ho terms and conditions of this mediated settlement and retail customers of Fairfax Water; and ic WHEREAS, the Mayor and City Council have public hearings a d pub carefully c ns derled outreach on the proposal and the issues associated therewith, the merits of the proposal. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fairfax, that the terms and conditions of the mediated�settlement enclude, but are Water and County of Fairfax be, and hereby are, approved, which following: r. The 1. City water customers shall become retail a net capacity ac�ty buy-if n to Fairf x eWater's City will pay the sum of $20 million as P ugh a seven year not , with system. The City will pay that obligation �° it interest.five i There years being interest free and the last t y ears at three percent n shall be no pre-payment penalty. The note will have a b Moos mend at the end of its term at which time the principal portion of the note • 2. Fairfax Water will establish rate uniformity between the City's cuing under customers and those of Fairfax Water within three years CitYs the final agreement. There will be immediate rate un oifrmityg etween th outtids existing customers within its boundaries and Y its boundaries. 3. Fairfax Water will offer employment d and all guarantee yemploymentafor three years system employees being displaced following the date of such employment terminable only for cause, and With to less compensation than the employees currently earn; provided ith that, with regard to t to Goose Creek treatment plant employees, Fairfax those employees only if Goose Creek ceases production, but not lat r than three years following closing under the final agreement. The City will ens re that such employees' pension and benefit obligations are brought current. 4. Fairfax Water will acquire all pipe, storage facilities and appurtenances iecl ithi the City and in the County needed to operate the water system, transmission mains within Fairfax County. The Goose Creek retain Goose Loudoun County (including but not limited to the Creek and Beaverdam Reservoirs, dams and all related land). 5. The City will retain all debt associated with the water system, unless immediate upgrade improvements are needed and agreed to by Fairfax Water. 1 1 \ il 6. The City, County and Fairfax Water will seek dismissal of pending lit gation regarding this matter upon approval by the City, County and Fairfax Wat r of a final agreement between the parties. Fairfax County will not enforce ' s rate regulation ordinance pending approval of a final agreement by all partii s and closing under that agreement. BE IT FURTHER RESOLVED by the City Council of the City of a the County Fairfax, staff be, and hereby is, directed to enter into negotiations with Fairfax of Fairfax to finalize an agreement which would implement th the terms of this is reso ut of sa d the terms and conditions of the mediated settlement, subject agreement by all parties involved. ADOPTED this 9th day of April, 2013. .72c7cf___irril---.:Vat.f___‘, / Mayor ATTEST: / At ,/ , - /1 City Clerk The vote on the motion to approve was recorded as follows: VOTE: Councilman DeMarco Aye Councilman Drummond Aye Councilman Greenfield Aye Councilman Meyer Aye Councilmember Schmidt Aye Councilman Stombres Aye Ii